Value of super plunges $100bn

AT least $100bn has been wiped off the value of super savings since last September as the financial crisis bites.

Nest egg

Value of super plunges $100bn

AT least $100 billion or 10 per cent has been wiped off the value of Australia's superannuation savings since last September, as the calamity on financial markets continues to deepen.

Australia's $1.17 trillion superannuation nest egg has shrunk by around 4.4 per cent in this financial year alone, eroding super balances by $48 billion and disrupting many retirement plans.

Jeff Bresnahan, founder of independent research centre SuperRatings, said people had a right to be worried but there was  "still no cause for panic''.

"The five-year returns are still saying 8 per cent-plus returns,'' he said. "Over five years that is CPI (consumer price index) plus 4.5 per cent which is a bloody good result.''

But many Australians are woefully underprepared for retirement, with the average working male retiring today on $140,000 and women on just $70,000.

According to ASFA, the average man has a superannuation balance of $70,000 and $36,000 for women, across 30 million super accounts in the country.

Mr Bresnahan said that, since last June, $7000 has been wiped off men's super and $3600 has been eroded from women's balances, on average.

Four out of five Australians have, whether by choice or default, invested their superannuation in a balanced spread of options.

"Unfortunately, super doesn't go up in a straight line and it's gone up very hard between 2003-2007, with returns of 50-60 per cent,'' Mr Bresnahan said.

"If you asked a punter on the street five years ago, would they accept a 40 per cent rise in super then everyone would say, absolutely.

"So it's gone up really hard and come off really hard but the end result is still really good.''